Public Choice analysis applies the methodology of neoclassical economic analysis to issues in political science and the policy process. Issues covered in class include the role and function of government, and governmental decision-making; the intersection between public and private interests; the connection between voters, politicians, and the economy; and the effect and evolution of governmental institutions.

PRE-REQUISITES: ECN 201 (or ECN215), ECN 205

TEXTS

Readings in Public Choice Economics, by Jac Heckelman
Economic Politics, by William Keech

EXAMS

• Midterm (25%), October 14 - 3pm

• Final (25%), December 12 - 9am

PAPERS AND PRESENTATION (25% each paper)

• Paper I - Due October 5

For this paper you will need to select outside readings (of your choice) of two articles related to public choice topics. The paper should be 6-10 double-spaced pages (not including the title page) summarizing the articles, and comparing and contrasting them. Keep in mind that other students will be held responsible for knowing (and understanding) the content of your paper and thus must be written in a manner which is self-contained. Papers are to be turned in as hardcopy and also as a file attached to email. SCAN YOUR ELECTRONIC FILE FOR VIRUSES BEFORE SENDING IT. Include on the title page a set of 3 short answer questions relevant to your paper which can be used on the exam.

The outside articles MUST be approved no later than September 30.
 

• Presentation--October 5 and October 7

• Paper II - Due November 30


For this paper you will need to select an outside reading and using original creative thought, discuss a related idea. This can consist of either a criticism, extension, or test proposal, or a combination thereof. The paper must be 6-10 double-spaced pages (not including the title page), providing a thorough summary of the article so a nonreader will understand the relelvant points, concentrating on what will be relevant for your original contribution, and then your original contribution. The focus will of course be on your contribution. Keep in mind that other students will be held responsible for knowing (and understanding) the content of your paper and thus must be written in a manner which is self-contained. Papers are to be turned in as hardcopy and also as a file attached to email. SCAN YOUR ELECTRONIC FILE FOR VIRUSES BEFORE SENDING IT. Include on the title page a set of 3 short answer questions relevant to your paper which can be used on the exam.

An outline proposal for your paper is DUE by November 23.
 

• Presentation--November 30 and December 2

Papers will be presented in class (15 minutes) on the above dates. Four papers will be presented on the first dates listed and two on the second. Student pairs will present either their first or second paper. All papers will be posted to this page. Students are expected to be familiar with all the papers so you will need to read those papers not presented in class.

All students will be expected to stay up to date on the class readings and be prepared to discuss individual readings in class and contribute positively to the overall classroom environment. Grades WILL BE ADJUSTED at the margin based on participation. To ensure everyone is prepared to discuss the readings, brief answers are to be prepared for questions related to each reading. All assigned readings have questions except the chapters from the Keech textbook. TYPED responses are to be brought to class on the day of that reading and turned in at the end of class. Homeworks submitted by email must be received prior to the start of class on the day it's due. NO EXCEPTIONS. The master question sheet is available here.

READING SCHEDULE

I OVERVIEW

8-26
• Gwartney and Wagner, “The Public Choice Revolution”

II RENT-SEEKING

8-31
A. Definition

• Tollision, “Is the Theory of Rent-Seeking Here to Stay?”
• rent-seeking slides (download)
• Tullock, “Rent Seeking and Tax Reform”
• Lott, “Some Thoughts on Tullock's New Definition of Rent Seeking” (download)

9-2
B. Policy Application
• Coffman, “Tax Abatements and Rent Seeking” (Blackboard)

C. Endogenous Rent Seeking
• McChesney, “Rent Extraction and Rent Creation in the Economic Theory of Regulation”

III COLLECTIVE ACTION

9-7
A. Public Goods and Free Riding

• Holcombe, “Public Goods Theory” (Blackboard)

9-9
B. Implications for Voting
• Johnson, “Voting, Rational Abstention, and Rational Ignorance” (Blackboard)
• Heckelman, “The Effect of the Secret Ballot on Voter Turnout Rates”

9-14
Guest Lecture - Randall Holcombe

9-16
C. Club Goods
• Anderson, Shughart, and Tollison, “Clubs and Club Goods” (Blackboard)
• O'Neal, “The Theory of Collective Action and Burden Sharing in NATO”

9-21
D. Interest Group Effects
• Olson, “The Political Economy of Comparative Growth Rates” (Blackboard)

IV BUREAUCRACY

9-23
A. Model and Critique
• bureaucracy slides (download)

9-30
• Blais and Dion, “Are Bureaucrats Budget Maximizers?”

B. Empirical Test
• Bartle and Korosec, “Are City Managers Greedy Bureaucrats?” (download)

10-12
C. Extension
• Breton and Wintrobe, “The Equilibrium Size of a Budget-maximizing Bureau”

[MIDTERM EXAM]

V ECONOMIC VOTING

10-19
A. Concepts
• Keech, chapter 1

B. Vote Share Equations
• Keech, chapter 6

10-21
• Fair, “Econometrics and Presidential Elections”
• Fair, “The Effect of Economic Events on Votes for President: 2004 Update” (download)
• Erikson, “The American Voter and the Economy, 2008” (Blackboard)
• Peltzman, “Economic Conditions and Gubernatorial Elections” (download)

10-26
A. Phillips Curves Framework
• Keech, chapter 2
• electoral cycles slides (download)

B. Opportunistic Cycles
• Keech, chapter 3

10-28
• Case, “Taxes and the Electoral Cycle”

C. Partisan Cycles
• Keech, chapter 4

11-2
• Alesina, “Politics and Business Cycles in Industrial Democracies” (download)

D. Divided Government
• Hahm, Kamlet, and Mowery, “Influences on Deficit Spending in Industrialized Democracies” (download)

VII GOVERNANCE

11-4
A. Measuring Institutions
• Aron, “Growth and Institutions” (download)

11-9
B. Economic Freedom
• Berggren, “The Benefits of Economic Freedom” (download)
• Heckelman and Stroup, “Which Economic Freedoms Contribute to Growth?” (download)

11-11
C. Corruption
• Svensson, “Eight Questions about Corruption” (download)

11-16
D. Determinants of Governance Quality
• Busse and Groning, “Does Foreign Aid Improve Governance?” (download)

VIII FINAL THOUGHTS

11-18

• Keech, chapter 7
• Heckelman and Whaples, “Are Public Choice Scholars Different?” (download)
• Orchard and Stretton, “Critical Survey: Public Choice” (download)
• Brennan and Buchanan, “Is Public Choice Immoral?”

STUDENT PAPERS